Ontex Group NV reported a solid sequential improvement in its third-quarter 2025 results, driven by new contract wins and continued execution of its transformation program, despite facing a year-on-year revenue decline due to subdued market demand.

 

The company posted Q3 revenue of €445 million, down 3.8% like-for-like compared to the same period in 2024, primarily due to a 3.9% drop in volumes. However, revenue rose 3.7% versus Q2 2025, reflecting gains from new contracts, particularly in baby care.

 

Adjusted EBITDA came in at €51 million, representing a margin of 11.4%. While this was €6 million lower year-on-year, it marked a €15 million improvement over the previous quarter. The margin also rose 3.0 percentage points sequentially, supported by €16 million in net savings from Ontex’s cost transformation program, which offset inflationary pressures and higher raw material costs.

 

Operating profit surged to €29 million, up from €8 million a year earlier, aided by significantly lower restructuring charges. Net financial debt improved by €9 million to €543 million, with the leverage ratio holding steady at 2.7x.

 

Segment-wise, adult care and feminine care saw volume growth of 1% and 5% respectively, while baby care volumes declined 11% due to continued softness in demand and competitive pressures from branded products.

 

CEO Gustavo Calvo Paz expressed optimism: “The significant sequential improvement in profitability in the third quarter… gives us confidence that we are on target to deliver a strong end to 2025 despite soft market conditions.”

 

Ontex reaffirmed its full-year outlook, expecting a low single-digit like-for-like revenue decline, adjusted EBITDA between €200 million and €210 million, free cash flow around zero, and year-end leverage near 2.5x.